Toronto is one of the best places to invest in a condo development. The buzzing metropolis is an economic hub in the country, home to a great number of multicultural communities and a city that never lacks in things to see. With the right amount of research and due diligence, condo investments in Toronto can promise a good ROI and steady cash flow.
Location, location, location
One thing you need to understand about condo investing in Toronto is that capital appreciation is not always guaranteed. However, you have a better shot at hedging against depreciation if you do your homework well. This means partnering with a good real estate company that can help you pinpoint valuable condo developments in good locations around the city.
Bigger investment, bigger returns
The more you can put towards the down payment, the less you have to pay monthly. This ensures that you have a more positive cash flow. If you have the budget for it, it’s highly recommended that you go beyond the usual 20% down so you can enjoy the proceeds from rental fees.
Before you sign the deal, it’s important that you’re aware of the extra fees you may be paying when you invest in a condo development. These include taxes and service fees from a property management company if you’re going to hire one.
Condos with personalities
The intrinsic qualities of upcoming condo developments make them attractive investment opportunities. Location is usually one indicator of profitability, but you also want to look at the facilities that the development has to offer. For instance, if you’re looking at the Forest Hill neighbourhood, you could be catering to potential tenants who are attracted to the exclusivity of the chic area. Housing options near universities are great for students who want to live nearby. Identifying your target market for your rental property is highly recommended.
If you’re considering investing in a new condo, browse our now selling pre-con listings.